SGX flags potential trading fraud in Zhongmin Baihui Retail Group
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Over 90% of trading volume came from a small group of investors.
Singapore Exchange (SGX) urged investors and potential investors to exercise caution when dealing in the shares of Zhongmin Baihui Retail Group Limited (ZMBH).
The SGX said that the share price of ZMBH remained steady from 26 October 2015 to 4 February 2016, despite a decline in the broad market. In particular, despite the STI falling 11.25% between 4 January 2016 and 4 February 2016 (relevant period), ZMBH’s share price remained relatively stable.
SGX’s review of the trades in ZMBH shares during the relevant period showed that a small group of individuals was responsible for over 90% of the on-market buy volume of ZMBH shares. This group of individuals appears to be connected to each other.
SGX is currently reviewing the trades in ZMBH shares and will take the necessary actions.
Questions & Answers
Q.What specifically prompted the Singapore Exchange to issue this caution about Zhongmin Baihui Retail Group?
What specifically prompted the Singapore Exchange to issue this caution about Zhongmin Baihui Retail Group?
The SGX noted that ZMBH's share price remained steady from October 2015 to February 2016, even as the broader market declined. A small group of individuals also accounted for over 90% of the on-market buy volume during this time.
Q.Who was responsible for the high trading volume in Zhongmin Baihui Retail Group shares?
Who was responsible for the high trading volume in Zhongmin Baihui Retail Group shares?
A small group of individuals was responsible for over 90% of the on-market buy volume of ZMBH shares during the relevant period. This group appears to have connections to each other.
Q.What action is the Singapore Exchange currently taking regarding Zhongmin Baihui Retail Group shares?
What action is the Singapore Exchange currently taking regarding Zhongmin Baihui Retail Group shares?
The SGX is currently reviewing the trades in ZMBH shares. They have stated they will take necessary actions following their review of the situation.
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